{"id":2201639,"date":"2023-07-10T08:00:14","date_gmt":"2023-07-09T23:00:14","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201639"},"modified":"2023-07-09T23:17:18","modified_gmt":"2023-07-09T14:17:18","slug":"lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/","title":{"rendered":"LG Energy Solution and SQM ink largest lithium contract in history"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">LG Energy Solution has entered into a major lithium supply <\/span><a href=\"https:\/\/www.lgensol.com\/kr\/company-newsroom-detail?seq=8556\"><span style=\"font-weight: 400;\">agreement<\/span><\/a><span style=\"font-weight: 400;\"> with the Chilean chemical company SQM. The agreement, which is the largest lithium supply contract in history, guarantees LG Energy Solution a supply of 100,000 tons of lithium over the next seven years. This is a significant increase from an earlier contract between the two companies, which provided for the supply of 36,000 tons of lithium. The new agreement will enable LG Energy Solution to produce batteries for more than 2 million electric vehicles (EVs).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis contract allows us not only to bolster the stability of our lithium supply, a crucial component for batteries but also to enhance our ability to actively respond to the U.S. Inflation Reduction Act (IRA) by diversifying our supply chain,\u201d said Kim Myung-hwan, LG Energy Solution\u2019s chief procurement officer. \u201cLeveraging our exceptional raw material supply stability and unrivaled product competitiveness, we are committed to delivering unparalleled value to our global customers.\u201d<\/span><\/p>\n<p><b>Why It Matters<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The growing popularity of EVs has resulted in an increased demand for lithium-ion batteries, a crucial power source for these vehicles. Securing a large supply of lithium ensures LG Energy Solution can meet this growing demand. SQM sources its lithium from <\/span><a href=\"https:\/\/ustr.gov\/trade-agreements\/free-trade-agreements\/chile-fta#:~:text=The%20United%20States%2DChile%20FTA,maintain%20competition%20laws%20that%20prohibit\"><span style=\"font-weight: 400;\">Chile<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/ustr.gov\/trade-agreements\/free-trade-agreements\/australian-fta\"><span style=\"font-weight: 400;\">Australia<\/span><\/a><span style=\"font-weight: 400;\">, both of which maintain free trade agreements with the U.S. As a result, the lithium supplied by SQM is eligible for incentives under the <\/span><a href=\"https:\/\/crsreports.congress.gov\/product\/pdf\/IN\/IN11996\/2\"><span style=\"font-weight: 400;\">IRA<\/span><\/a><span style=\"font-weight: 400;\">. According to the law, an electric vehicle is eligible for U.S. tax credits if at least 40% of the market value of critical minerals in its battery is sourced from the U.S., a country with which the U.S. has a free trade agreement or is recycled in North America. This percentage is slated to increase to 80% by 2027.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Entering into this agreement with SQM allows LG Energy Solution to anticipate and plan its lithium supply for the next several years, offering critical stability for long-term planning and minimizing the risk of supply chain disruptions. In light of U.S. efforts to limit Chinese access to certain advanced microprocessors, China is set to <\/span><a href=\"https:\/\/www.bbc.co.uk\/news\/business-66093114\"><span style=\"font-weight: 400;\">restrict<\/span><\/a><span style=\"font-weight: 400;\"> exports of gallium and germanium, both essential elements in semiconductor chip production, starting in August. Amid this ongoing U.S.-China rivalry, South Korean firms must secure alternative supply chains to maintain their competitive edge.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>LG Energy Solution has entered into a major lithium supply agreement with the Chilean chemical company SQM. The agreement, which is the largest lithium supply contract in history, guarantees LG Energy Solution a supply of 100,000 tons of lithium over the next seven years. This is a significant increase from an earlier contract between the [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2201640,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24],"class_list":["post-2201639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>LG Energy Solution and SQM ink largest lithium contract in history - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LG Energy Solution and SQM ink largest lithium contract in history - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"LG Energy Solution has entered into a major lithium supply agreement with the Chilean chemical company SQM. The agreement, which is the largest lithium supply contract in history, guarantees LG Energy Solution a supply of 100,000 tons of lithium over the next seven years. This is a significant increase from an earlier contract between the [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-09T23:00:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-09T14:17:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/koreapro.org\/wp-content\/uploads\/sites\/6\/2023\/07\/lg.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"548\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"LG Energy Solution and SQM ink largest lithium contract in history\",\"datePublished\":\"2023-07-09T23:00:14+00:00\",\"dateModified\":\"2023-07-09T14:17:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/\"},\"wordCount\":389,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/07\/lg.png\",\"keywords\":[\"Business &amp; Economy\"],\"articleSection\":[\"Briefings\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/\",\"url\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/\",\"name\":\"LG Energy Solution and SQM ink largest lithium contract in history - KOREA PRO\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/07\/lg.png\",\"datePublished\":\"2023-07-09T23:00:14+00:00\",\"dateModified\":\"2023-07-09T14:17:18+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/#primaryimage\",\"url\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/07\/lg.png\",\"contentUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/07\/lg.png\",\"width\":1870,\"height\":1000},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/koreapro.org\/2023\/07\/lg-energy-solution-and-sqm-ink-largest-lithium-contract-in-history\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/koreapro.org\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"LG Energy Solution and SQM ink largest lithium contract in history\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/koreapro.org\/#website\",\"url\":\"https:\/\/koreapro.org\/\",\"name\":\"KOREA PRO\",\"description\":\"Be smart about South Korea. 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